The global coronavirus pandemic has likely changed the way commodity markets will perform for the next several years, and likely forever.
One of the biggest changes we may see is import buyers being less willing to live hand to mouth. This was a change that has taken place over the past several years when more countries started to export commodities.
The most notable of these is South America. The expansion we have seen in South American production in recent years, mainly on soybeans, has allowed importers to be more casual in their purchases.
This is from the fact the world market is now in a state of perpetual soybean production, giving buyers a seemingly endless supply of soybeans. While this is a fact, logistical issues have proven to easily disrupt the supply line.
Once the coronavirus outbreak started to spread, global vessel lines were more cautious about which ports they would dock at. The virus also caused exporters to take extended loading times ...
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